On behalf of the entire VIVA team, we would like to wish everyone happy and healthy holidays. However, we also know the holidays can be stressful—especially this year. Therefore, we hope to alleviate some financial stress by sharing a few responsible spending tips for the holiday season.
Tip #1: Shop with a budget!
We all want to be generous this time of year, but it’s easy to get carried away and over-spend on gifts for friends and loved ones. Therefore, budgeting is essential to keeping our finances under control during the gift-giving season. Try this simple and effective budgeting technique to ensure you don’t over-spend on gifts:
- Decide the total amount you will spend on gifts.
- Make a list of everyone you plan to buy gifts for.
- Allocate the maximum dollar amount you will spend on each person (this should add back up to your total amount).
Here is a quick sample of what a holiday shopping budget might look like…
| Holiday Shopping Budget | $500 |
| Mom | $200 |
| Dad | $100 |
| Sister | $100 |
| Grandmother | $50 |
| Cousin | $50 |
Not only is budgeting essential during the holidays—it is a cornerstone of financial well-being all year round. We highly recommend exploring more in-depth information on budgeting in our previous newsletter, Budgeting Made Simple.
Tip #2: Be mindful of seasonal expenses.
In addition to gift-giving, there are many other expenses that often lead to a spike in spending during the holidays. Some traditional seasonal expenses include:
- Entertaining family and friends
- Dining out
- Travel
- Home decoration
- Season clothing
This year, the Coronavirus pandemic has forced many people to stay inside and tighten their budgets. However, the prevalence of modern conveniences like online shopping and food delivery at our fingertips makes it easier than ever to keep on spending. We don’t mean to sound Grinchy, but it is important to be mindful of these seasonal expenses to make sure you don’t go overboard!
Tip #3: Be careful about over-using credit cards.
Credit cards can be a healthy part of your financial life and often provide an effective means of financing important purchases. However, one of the dangers of revolving credit is that you can easily get in over your head. Spending limits are often high relative to monthly income, and about 37% of Americans carry credit card debt from month to month. (Remember, if you carry a monthly balance on your credit card, you must pay interest on that balance.) Excess credit card debt is also one of the leading reported causes of bankruptcy in the United States.
During the holidays, it’s easy to swipe the plastic and defer the consequences. However, holiday spending can increase the risk of building up a balance that will carry over into the new year and begin accruing interest. Make sure you understand the interest rates on your credit cards and monitor your charging habits to ensure you don’t spend yourself into a hole that will be difficult to dig out of.
Affordable Financing for the Holidays
If you are in need of affordable financing this holiday season, VIVA Finance offers personal loans that can be used to help cover important expenses. Eligibility with VIVA is based on employment—instead of credit history—and VIVA’s installment loans come with built-in guardrails to ensure responsible borrowing. Loan amounts are limited based on income and repayments are made automatically through payroll, which can help build your credit score over time.
You can visit www.viva-finance.com to learn more and see if there is an option that is right for you. If you have any questions, please give us a call at (678) 685-8834 and a team member will be happy to speak with you.
Thank you for being part of the VIVA Finance community, and we wish you happy and healthy holidays!
Sincerely,
The VIVA Team
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